*Pages 1--6 from Slide 1* Wireless Telecommunications Bureau Report to Congress Ninth Annual CMRS Competition Report September 9, 2004 1 Wireless Telecommunications Bureau Growth in the Mobile Telephone Industry (YE2002- YE2003) 161 Million Subscribers in 2003 205,629 Jobs in 2003 146 Billion Invested as of 2003 UP 13% From 142 Million Subscribers in 2002 UP 7% From 192,410 Jobs in 2002 UP 15% From $127 Billion as of 2002 DOWN 13% From $0.11 per minute in 2002 UP 19% From 427 MOUs in 2003 507 Average Monthly MOUs in 2003 Price per minute Minutes of Use Capital Investment Subscribers Jobs Price per minute Source: Cellular Telecommunications & Internet Association; FCC. 2 Wireless Telecommunications Bureau Total US Mobile Telephone Wireless Subscribers 16 24 34 44 55 69 86 110 128 142 161 0 25 50 75 100 125 150 175 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Millions of Subscribers Source: Cellular Telecommunications & Internet Association (1992- 2000); FCC (2001- 2003). 3 Wireless Telecommunications Bureau Mobile Telephone Competition 96.8% 93.0% 87.5% 29.5% 75.8% 0% 20% 40% 60% 80% 100% 3 or more 4 or more 5 or more 6 or more 7 or more Number of Competitors in a County* P e r c e n t o f U . S . P o p u l a t i o n 1995 2001 2002 2003 2004 *Facilities- based competitors Source: Federal Communications Commission 5